I received CRITICAL NOTICE: for Rental Properties and Royalties (Sch E) but I have not filed Form 4562 Depreciation and Amortization Report last year, what should I do?

Forum|Forum|5 years ago
April 14, 2021
1 reply
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I have some number in section 18 Depreciation expense or depletion of schedule E of 1040

TurboTax Premier Online

Best answer by Anonymous_

Most of the assumptions are right. A few notes:

The property is a duplex. One side has been rented for the whole time since 2018 that I purchased it.

The other unit, I used it for rental in 2018, lived in it around 6 months in the 2019 and rented it again.

My tax filing of last year didnt have Form 4562 in it. But on schedule E of 1040 there is some numbers at the line 18

@Ray1

The instructions available at the link below should provide a resolution to your issue.

How do I fix my Rental Properties and Royalties (S... (intuit.com)

Note that you need the Form 4562-Depreciation and Amortization Report and not the actual Form 4562.

Carl11_2

Employee

I'm not fully grasping what you're talking about with "CRITICAL NOTICE". Can you provide more details? Maybe you got some kind of notice in the form of a letter from the IRS? Maybe it's from whatever state taxes your personal income? Or something completely different?

Ray1Author

Thanks for fast respond. The notice was in an email I received from TurboTax, because obviously last year TurboTax made mistakes in the processing.

here is what was in the email:

Dear Valued TurboTax Customer,

At TurboTax, we are committed to helping you get your maximum refund by ensuring your return is filed with 100% accuracy. Unfortunately, we identified an issue that affects the accuracy of your 2020 tax return within Rental Properties and Royalties (Sch E).

You will need to follow the steps in the link below to correct your return before you file by the deadline on April 15, 2021.

We sincerely apologize for the inconvenience and are here to help you resolve this and get your return successfully and accurately e-filed. We have outlined instructions to follow here: https://support.turbotax.intuit.com/redirect/fix-sch-e-not-filed

If you have additional questions or would like to speak with one of our experts at any point during this process, please call us at [phone number removed] and mention "Rental Properties and Royalties (Sch E)." We're here to help every day from 5am-9pm PST.

As always, thank you for being a valued TurboTax customer.

Carl11_2

Employee

That's the clarification needed. Now chances are better I can actually help here. If any of my assumptions are wrong, please let me know and provide the correct information.

- You only have one rental property.

- The rental property is Residential Rental Real Estate, and not commercial rental real estate

- The property was placed "in service" in 2019 or before. (Helps if I know what year)

- You have more than one asset listed in the Assets/Depreciation section for that rental property.

- If you have more than one rental property, then you know which specific one did not import the depreciation information from your 2019 tax return.